The value of “black gold” is rising, as traders focus on Moscow’s reaction to the “price ceiling” on Russian raw materials.
On Friday, December 23, oil prices rose by more than a dollar amid expectations of Russian oil supply cuts. This was reported by Reuters.
Brent crude rose 66 cents, or 0.8%, to $81.64 a barrel, while West Texas Intermediate (WTI) oil settled at $78.27 a barrel, up 78 cents, or 1%.
Earlier in the session, they touched highs of $82.17 and $78.77, respectively. Both contracts should show a second weekly gain, with Brent up 3.3% and WTI up 5.4%.
It was noted that the current situation helped offset the blow to demand for transport fuel in the United States due to difficult weather conditions. More than 4,400 flights to the US were canceled in two days because of a winter storm that coincided with the holiday season.
On Thursday, oil prices fell on both sides of the Atlantic due to flight cancellations. A blizzard can also disrupt motorists’ travel plans for Christmas and New Year by reducing fuel consumption.
The agency emphasized that Baltic oil exports from Russia could fall by 20% in December compared to the previous month against the background of the introduction of the European Union and the G7 countries of the price ceiling for Russian raw materials.
“Russia may reduce oil production by 5-7% at the beginning of 2023, because in response to price cuts for its oil and oil products, it prevents sales to countries that support them,” said Deputy Prime Minister Alexander Novak.
Crude prices rose as energy traders focused on Moscow’s response to capping Russian oil prices rather than the thousands of flight cancellations that could disrupt travel, analysts said.
It can be remembered that in early December, more than 30 countries in the world set a ceiling on the price of oil from Russia at $60 per barrel.
Oil embargo: Ukraine expects Russia’s income to drop by 50%
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Source: korrespondent
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